Lecture 1 Marketing: Creating and Capturing Customer Value and Market Segmentation

1. Lecture 1Marketing: Creating and Capturing Customer Value and Market Segmentation

2. What Is Marketing? Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return

3. Understanding the Marketplaceand Customer Needs Customer Needs, Wants, and Demands

4. Understanding the Marketplaceand Customer Needs Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs

5. Understanding the Marketplaceand Customer Needs Markets are the set of actual and potential buyers of a product

6. Designing a Customer-Driven Marketing Strategy Marketing management is the art and science of choosing target markets and building profitable relationships with them • What customers will we serve? • How can we best serve these customers?

7. Designing a Customer-Driven Marketing Strategy Market segmentation refers to dividing the markets into segments of customers Target marketing refers to which segments to go after Selecting Customers to Serve

8. Designing a Customer-Driven Marketing Strategy Choosing a Value Proposition Value proposition Set of benefits or values a company promises to deliver to customers to satisfy their needs

9. Designing a Customer-Driven Marketing Strategy Marketing Management Orientations Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do

10. Preparing an Integrated Marketing Plan and Program The marketing mix: set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place. Integrated marketing program: comprehensive plan that communicates and delivers the intended value to chosen customers.

11. Building Customer Relationships The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer Relationship Management (CRM)

12. Building Customer Relationships Customer Relationship Levels and Tools

13. Building Customer Relationships Relating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers Relating more deeply and interactively by incorporating more interactive two way relationships through blogs, Websites, online communities and social networks The Changing Nature of Customer Relationships

14. Capturing Value from Customers Right relationships with the right customers involves treating customers as assets that need to be managed and maximized Different types of customers require different relationship management strategies Building Customer Equity

15. Market Segmentation Market segmentation is the division of a market into distinct groups of buyers who have different needs, characteristics, or behavior and who might require separate products or marketing mixes Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts

16. Market targeting Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

17. Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer Marketing Positioning

18. Market Segmentation

19. The Marketing Mix Marketing mix is the set of controllable tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market

20. The Marketing Mix